Major infrastructure project and social welfare audit findings in Cyprus

On November 10, 2026, the Cyprus Ministry of Transport signed a contract worth €75.8 million with the Iacovou-Cyfield consortium to construct the third phase of the Nicosia ring road. The 9.4-kilometer section will connect Anthoupolis with Anageia, linking the Nicosia-Palaichori highway to the capital’s beltway. Construction is scheduled to begin in January 2027 and is expected to take 40 months to complete.

Simultaneously, a report from the Audit Office has exposed significant irregularities in the distribution of Guaranteed Minimum Income (GMI). Investigators found 150 cases where applications remained in a "pre-approved" state for over two years without proper documentation. In one instance, a recipient received €102,528 between January 2017 and March 2024 without submitting required evidence, while another received €80,607 over 83 months. Currently, approximately 22,000 people receive GMI payments.

These developments occur against the backdrop of labor market challenges, with the PEO union reporting that 188,697 employees in Cyprus earn less than €1,500 per month. The union plans to push for a significant increase in the minimum wage in 2027, citing the rising cost of living. Separately, local authorities are considering new urban projects in Paphos, and British military bases have announced plans to increase drone surveillance along the Green Line.